IB Business (Gia Như)

What is the purpose of final accounts for stakeholders?

• To show the business's marketing strategy
• To provide financial performance and position data
• To list employee salaries
• To track customer satisfaction

What does the profit and loss account show?

• The financial position of a business
• The financial performance of a business
• The total assets of a business
• The total liabilities of a business

What does the balance sheet show?

• The financial performance of a business
• The financial position of a business
• The total revenue of a business
• The total expenses of a business

What is the formula for calculating gross profit?

• Sales revenue + Cost of sales
• Sales revenue - Cost of sales
• Sales revenue × Cost of sales
• Sales revenue ÷ Cost of sales

What is included in the cost of sales (COS)?

• Rent and insurance
• Raw materials and direct labour costs
• Management salaries
• Interest and tax

What is the formula for calculating cost of sales?

• Opening stock + Purchases - Closing stock
• Opening stock - Purchases + Closing stock
• Closing stock + Purchases - Opening stock
• Closing stock - Purchases + Opening stock

What is the formula for calculating profit before interest and tax?

• Gross profit - Expenses
• Gross profit + Expenses
• Gross profit × Expenses
• Gross profit ÷ Expenses

What is retained profit?

• Profit distributed to shareholders
• Profit kept within the business for future use
• Profit used to pay taxes
• Profit used to pay interest

What is the formula for calculating net assets?

• Total assets + Total liabilities
• Total assets - Total liabilities
• Total liabilities - Total assets
• Total liabilities ÷ Total assets

What are non-current assets?

• Assets expected to last less than 12 months
• Assets expected to last more than 12 months
• Assets that are liquid
• Assets that are short-term